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Economic Concepts and Events Quiz

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Which of the following is a characteristic of a command economy?

Centralized government control

Explanation

In a command economy, the government makes all decisions about what and how to produce, leading to centralized control.

What does GDP stand for in economics?

Gross Domestic Product

Explanation

GDP is the total value of all goods and services produced within a country's borders in a specific time period.

What is the term for a sustained increase in the general price level of goods and services in an economy over a period of time?

Inflation

Explanation

Inflation refers to a persistent rise in the overall prices of goods and services.

What is the economic term for the total amount of money or assets owned by an individual or entity?

Wealth

Explanation

Wealth represents the total value of assets and money owned by an individual or entity.

Which of the following is a measure of the average prices of a basket of goods and services consumed by households?

Consumer Price Index (CPI)

Explanation

CPI measures the average prices of a basket of goods and services, reflecting inflation's impact on consumer costs.

What is the term for the excess of government spending over government revenues during a certain period?

Budget deficit

Explanation

A budget deficit occurs when government spending exceeds its revenues within a specific timeframe.

Which economic concept refers to the total value of goods and services produced within a country's borders in a specific time period?

Gross Domestic Product (GDP)

Explanation

Gross Domestic Product (GDP) measures the total economic output within a country.

What is the term for the maximum amount of a good that producers are willing and able to sell at a certain price during a given period?

Supply

Explanation

Supply represents the quantity of a good that producers are willing to sell at a specific price.

What is the term for the measure of responsiveness of the quantity demanded or supplied of a good to a change in its price?

Elasticity

Explanation

Elasticity measures how demand or supply of a good responds to changes in its price.

#10

Which of the following is NOT a factor of production according to classical economics?

Entrepreneurship

Explanation

Classical economics considers land, labor, and capital as factors of production, excluding entrepreneurship.

#11

What term refers to a situation where the production of one good increases, resulting in the opportunity cost of producing another good to rise?

Trade-off

Explanation

A trade-off occurs when producing more of one good leads to a higher opportunity cost of producing another.

#12

Which economic concept suggests that as production of a good increases, the cost of producing each additional unit of that good decreases?

Economies of scale

Explanation

Economies of scale indicate that per-unit production costs decrease with increased production.

#13

Which economic theory advocates for minimal government intervention in the economy, believing that markets will self-regulate?

Capitalism

Explanation

Capitalism supports minimal government intervention, relying on market forces for self-regulation.

#14

Which economic theory emphasizes the role of government spending, taxation, and monetary policy in influencing aggregate demand and solving economic problems?

Keynesianism

Explanation

Keynesianism focuses on government intervention to manage demand and address economic issues.

Economic Concepts and Events Quiz

Which of the following is a characteristic of a command economy?

What does GDP stand for in economics?

What is the term for a sustained increase in the general price level of goods and services in an economy over a period of time?

What is the economic term for the total amount of money or assets owned by an individual or entity?

Which of the following is a measure of the average prices of a basket of goods and services consumed by households?

What is the term for the excess of government spending over government revenues during a certain period?

Which economic concept refers to the total value of goods and services produced within a country's borders in a specific time period?

What is the term for the maximum amount of a good that producers are willing and able to sell at a certain price during a given period?

What is the term for the measure of responsiveness of the quantity demanded or supplied of a good to a change in its price?

Which of the following is NOT a factor of production according to classical economics?

What term refers to a situation where the production of one good increases, resulting in the opportunity cost of producing another good to rise?

Which economic concept suggests that as production of a good increases, the cost of producing each additional unit of that good decreases?

Which economic theory advocates for minimal government intervention in the economy, believing that markets will self-regulate?

Which economic theory emphasizes the role of government spending, taxation, and monetary policy in influencing aggregate demand and solving economic problems?

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